Debit memos are essential to any company that is in operation. A debit memo functions like an invoice where a company is ‘billed’ for some services rendered or goods sold by another company. But the difference is that the billing is made internally; the bill is conveyed from one department or branch of a company to another department or branch of the same company.
Hence, a debit memo is an internal billing within the company to record one department/branch’s services or sales to another department/branch of the same company.
There may be no physical payment with a debit memo although the internal financial sheets of the company record the transaction clearly. A debit memo reflects the operation between the different parts of the company for a truer financial condition.
Hence, a debit memo template may contain similar columns of information that is found on an invoice template, such as:
* Department or Branch name
* Department or Branch address & contact information
* Debit memo number
The debit memo also records information such as reason for raising a debit memo; this allows the department or branch head to approve or be updated on the transaction that has taken place. This piece of document also allows the internal auditor to track the internal activity.
The body of the Debit memo template is also similar to an invoice body with the following columns of information:
* Unit Price
* Total Price
Consider the attached sample template for your convenience.